More than £3billion was wiped off Barclays’ market value today as its rate-rigging scandal sent shockwaves throughout the banking sector.
The bank plunged 15.5% into the red, with rival stocks also suffering hefty falls amid fears over the potential for widespread multi-billion pound fines and damages.
London’s wider FTSE 100 Index was 30.9 points lower at 5,493.1, with sentiment also hit by low expectations over the outcome of this week’s European Union summit in Brussels.
Barclays shares tumbled 30.5p to 165.6p, while Royal Bank of Scotland was down 26.7p to 206.4p and Lloyds Banking Group was off 1.2p at 29.9p.
Household product group Reckitt Benckiser was among the other big fallers, off 77p at £33.00 after Credit Suisse downgraded the stock amid concerns about its prospects in developed markets such as Europe.
Water utility stocks were higher, thanks to news of a £1.2million sale of three businesses owned by France’s Veolia.
United Utilities rose 15.5p to 674.5p despite turning ex-dividend and Severn Trent lifted 22p to £16.45.
In the FTSE 250, department store chain Debenhams was 2%, or 1.7p lower at 85p in spite of reporting a sharp improvement in like-for-like sales for the last quarter.
Ladbrokes was the FTSE 250 Index’s biggest faller, down 12%, or 21.1p to 152.7p after it warned digital profits for the first half of 2012 would be 50% lower after punters failed to back England during Euro 2012 and its new website was delayed.
Pub company Greene King was slightly higher, up 4.5p to £5.36 after it reported an 8.6% rise in underlying profits.
Stuart Lamont, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, noted Cairn Energy up 2.1% to 255.75p, FirstGroup gaining 1.6% to 218.25p and BP adding 0.95% to 412.4p.
Petrofac dropped 0.7% to £13.64, Weir Group fell 0.5% to £14.50 and SSE shed 0.4% to £13.74.